Bitcoin price analysis: BTC drop to previous low at $3,700, will the support hold?

TL;DR Breakdown

• Bitcoin price analysis is bearish today.
• BTC/USD peaked around $39,000 yesterday.
• Swift drop was seen earlier today.

Bitcoin price analysis is bearish today as we have seen the beginning of retracement. However, the previous low with the $37,000 support is very close by, likely reversing the market soon and leading to more upside by the end of the week.

The market has seen mostly bearish sentiment over the last 24 hours. The leader, Bitcoin, has declined by 2.78 percent, while Ethereum by 2.86 percent. Meanwhile, the rest of the market follows closeby.

Bitcoin price movement in the last 24 hours: Bitcoin retraces after establishing slightly higher high yesterday

BTC/USD traded in a range of $37,201.06 – $38,884.68, indicating substantial volatility over the last 24 hours. Trading volume has declined by 11.81 percent, totaling $18.165 billion. Meanwhile, the total market cap  trades around $709.5 billion, resulting in a market dominance of 41.06 percent.

BTC/USD 4-hour chart: BTC already found support?

On the 4-hour chart, we can see the Bitcoin price action quickly pushing towards the previous low today, with the support at $37,000 already slowing the decline down.

The Bitcoin price action has continued to trade  higher over the past week despite the failure to break  the $38,500 resistance on the first try. Overnight to Monday, BTC/USD quickly retraced to establish another strong higher low around $37,000, indicating that more upside will be tested soon.

Break above the $37,000 mark indeed followed later in the day, indicating that bulls are still in control overall. Yesterday consolidation formed with several failed attempts to break above $39,000 as a sign that bulls are ready to take a pause.

Overnight, market remained calm until the past hours. The Bitcoin price action quickly spiked towards previous low, with the $37,000 mark almost reached. Overall, as long as the previous low is not broken, we expect BTC/USD to see a lot more upside by the end of the week.

Bitcoin price analysis: Conclusion 

Bitcoin price analysis is bearish today as we expect more downside to be tested after such a strong decline. However, since  the $37,000 previous support is already almost reached, reversal could come overnight.

While waiting for Bitcoin to move further, see our articles on Coinbase vs Coinbase Pro, Hardware vs Software wallet comparison, best Crypto trading platforms in the USA.